Segal Group’s Model Multi-Employer Plan Stays Fully Funded

Toronto Via New York (5/11/17) —
The funded status of The Segal Group’s model multi-employer pension plan remained stable and fully funded at 101 percent in the first quarter of 2017. This was due to a 3 percent gain in assets offsetting a 3 percent liability increase.

Segal also reported data from Statistics Canada on the number of hours worked in specific industries as a way to measure the long-term view of plan viability and ability to cover fixed costs. Of the six industries examined, only construction and utilities showed a decline.

“A reduction in the hours worked may alter the ongoing viability of a plan since it will affect the plan’s ability to cover fixed costs,” said McNeill. “This risk is magnified when a plan is dependent upon future contributions to pay down its unfunded benefit obligations.”

To speak with an expert about this issue of Direction and what our model MEPP’s funded status might mean for other MEPPs, please contact Todd Kohlhepp.